PIP/PD does not satisfy all the Florida motorist laws*
Yesterday, I took what is a fairly typical call from a young lady who was shopping for her first automobile insurance policy. After collecting the standard contact and vehicle information we began to discuss what coverages she wanted on her policy.
Her: "Just PIP/PD"
Me: "Are you sure? Do you know what PIP/PD covers and, more importantly, what it DOESN'T cover?"
Her: "Um...I just want what the law requires."
Unfortunately this is an all too common request for an agency that writes personal auto insurance. Bare minimum coverage. Clearly this young lady was coached to stick to just "what the law requires" and I would wager it was not someone with an insurance license.
Before I get into the other serious reasons I believe no one should buy a PIP/PD policy, lets look at what Florida law requires:
There are two major laws that motorists in Florida are required to abide by. The first is sometimes called the “No Fault” law which requires people to carry $10,000 personal injury protection (PIP) and $10,000 of property damage liability insurance (PD). This PIP/PD coverage is enough to satisy the requirement to purchase a tag for road use and can be confused by some to mean it is all the law requires.
There is a second major law that motorists must adhere to in Florida but it only triggers after an event like an injury involving a motor vehicle. This law is called the Florida Financial Responsibility Law and requires that motorists carry a minimum of $10,000 bodily injury liability per person and $20,000 per accident (BI). While not required to drive on the road, failure to carry this coverage (or an equivalent) at the time of an accident may result in a suspension of driving priviledges.
If you want to hear what the Office of Insurance Regulation in Florida has to say about it click here.
*Unless you have the equivalent of the minimum equivalent of the Florida Financial Responsibility Law, a PIP/PD only policy DOES NOT satisfy all of the Florida motorist laws.
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